The Importance of Cyber Insurance
When people think Cyber Insurance they think cover against hackers and computer virus’ but the truth is it covers much more than that and could benefit you more than you know. With more and more companies getting rid of paper files and opting to keep all data on computer systems the need for Cyber Insurance is becoming increasingly important. This guide will give you tips and show you exactly the scope of Cyber Insurance.
The first and most obvious part of this cover is as mentioned above protection against hackers and computer virus’. If your computers are hacked or infiltrated by virus’ and the files on those computers have been lost, stolen, corrupted or locked, cyber Insurance can cover you for any financial loss that occurs due to this Incident. One of the biggest examples of an incident covered by this policy would be the WannaCry Ransomware of 2017 that locked computers and the data held on them for the whole of the NHS.
Network extortion is becoming more and more common as the world around us becomes more reliant on computer services, hackers hold data until a ransom is paid and only then do they release it, there is no way around it and unfortunately not even the police can assist with this one. The only option is to pay the ransom to retrieve the locked files, your cyber Insurance policy will cover the cost of this ransom up to an agreed amount.
A lot of businesses use professional services like credit agreement companies on a day to day basis, this allows customers to pay their bill in instalments rather then one big lump sum. Should this service ever fail and money is lost due to either the credit companies wrong doing or a pure accident, cyber Insurance will cover you for the financial loss that may occur because of this.
The Internet was a brilliant invention but we are still a long way from making it perfect, people are often effected by poor connections and sometimes even a complete network shutdown. For a family home the consequences of network interruption are not so bad but for a company this could be catastrophic, the business that could be lost while repairs are being made and the connection reinstated could make a serious difference. If you are one of the clever people that has purchased Cyber Insurance your policy will cover you for the losses occurring due to the network interruption, most policies will however have a time franchise where claims are only paid when the network has been down for more than a set amount of time.
As a company it is highly likely that you will have your own intellectual property and copyrighted multimedia stored on your computer systems or on your company website. It may be quite easy for this data to be accessed and re used or misused without the permission of the owner, this could lead to reputational damage which in turn could create financial losses. These financial losses again would be covered by the cyber Insurance put in place before the occurrence of the incident.
One of the last major points is the cover provided for loss, damage and theft of the actual hardware itself. When the hardware is being kept at the specified Insured location your items will be covered for the above mentioned perils, cover can also be provided for the temporary removal of hardware from the Insured location.
These are just some of the main points that could assist your company with risk management against the dangers posed by the new cyber active world we live in. Cyber Insurance can protect the money, security and assets of the company and the customers of the Insured up to an agreed limit.
Cover your back today, don’t think about it when its too late!